Impact of Taiwanese Export Controls on Chinese Companies
Recent developments have put Chinese tech giants Huawei and SMIC in a challenging position as they face obstacles in accessing crucial resources for building AI chips. Taiwan’s International Trade Administration has updated its list of entities designated as strategic high-tech commodities, which now includes both companies and their subsidiaries.
This move by Taiwan means that businesses in the country will now require government approval before they can export any technology-related products to Huawei and SMIC. This restriction will significantly impact the two companies, as they will no longer have access to Taiwan’s plant construction technologies, materials, and equipment, potentially hindering China’s progress in developing new AI semiconductors.
The trade administration justified this decision by stating, “On June 10, we added some 601 entities from Russia, Pakistan, Iran, Myanmar, and mainland China including Huawei and SMIC to the entity list to combat arms proliferation and address other national security concerns.”
This development underscores the growing complexities in the global tech supply chain and the increasing scrutiny on Chinese tech companies. It also highlights the importance of international trade regulations in shaping the dynamics of the tech industry.
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Original article source: Bloomberg